Alan Curbishley is seeking compensation from West Ham United following his resignation in September.
The Telegraph says Curbishley is understood to have written to West Ham informing them he intends to pursue a claim for constructive dismissal, with the club believing that he waived any right to compensation when he resigned.
The former Charlton manager felt he had a clause in his contract guaranteeing him a say in all transfer dealings and he was particularly unhappy with the deadline day departure of George McCartney.
West Ham, though, believe that Curbishley was kept informed of their strategy throughout the transfer window.